An Initial Coin Offering (ICO) is a fundraising mechanism in which a new cryptocurrency project sells part of its crypto tokens to global crypto investors in exchange for money. In detail, ICOs are highly launched by cryptocurrency start-ups to raise capital, which can then be used to develop and grow the business.
Benefits of Launching an ICO platform to entrepreneurs -
- Raise capital - One of the main benefits of an ICO is the ability to raise capital quickly and efficiently.
- Global reach - ICOs are global by nature, and can be accessed by anyone with an internet connection. This means that entrepreneurs can tap into a global pool of investors, regardless of their location.
- Low barriers to entry - Compared to traditional methods of fundraising, the barriers to entry for an ICO are relatively low.
- Increased liquidity - When a company goes public through an initial public offering (IPO), the shares can be difficult to sell until the company has established a track record. With an ICO, token holders can sell their tokens on cryptocurrency exchanges relatively soon after the ICO, which can provide liquidity that is not always present with traditional investments.
When coming to the point of the development of ICO, the cost to launch an ICO platform can vary widely depending on a number of factors, such as,
- The complexity of the project
- The level of security
- Technical architecture
- Amount of marketing
- Outreach needed to attract investors
Some ICOs have raised millions of dollars with relatively simple platforms. However, the cost to launch an ICO from a readymade ICO script will cost low, compared to developing an ICO from Scratch!
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